Foster's to Spin Off Wine Unit as Earnings Drops 12%
Foster's to Spin Off Wine Unit as Earnings Drops 12%
Feb 14, 2011 6
Foster’s Group Ltd., Australia’s biggest brewer, will spin off the world’s second-largest wine business as it focuses on reviving beer earnings after first- half profit fell 12 percent.
Shareholders will vote on the split in April to receive one share in the new Treasury Wine Estates for every three Foster’s shares they currently own with completion expected by May, the Melbourne-based company said today in a statement. Net income decreased to A$312.1 million ($313 million) in the six months ended Dec. 31 from A$355.7 million a year earlier, the Melbourne-based company said.
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